Signs of compromise from Greece

Monday, June 08, 2015 - 02:01

It's another crucial week for Greece as it struggles to reach an agreement with lenders and avert bankruptcy. As Sonia Legg reports Finance Minister Yanis Varoufakis is kicking off proceedings by holding meetings in Germany.

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It probably wasn't the easiest of meetings for the Greek Finance Minister.
After his government rejected a reform plan from creditors last week Yanis Varoufakis was keen to strike a conciliatory tone as he met his German counterpart in Berlin.
(SOUNDBITE) (English) GREEK FINANCE MINISTER, YANIS VAROUFAKIS, SAYING:
"Dr Schaeuble and I had a long, productive conservation. These are difficult moments for the European Union and the euro zone in particular and it is the duty of politicians, elected politicians, to take their responsibility to a higher level in order to try to achieve an agreement."
The meeting he said was "extremely friendly" and they both had a "common understanding".
That's all very well - but it doesn't solve the crisis or secure a deal.
Athens needs to make concessions and accept austerity cuts - and that's causing a split within Greece's ruling Syriza party.
Jane Foley is from Rabobank.
SOUNDBITE (ENGLISH) RABOBANK, SENIOR CURRENCY STRATEGIST, JANE FOLEY, SAYING:
"It is a very difficult set of circumstances and it does seem that the creditors patience is running thin and therefore the market does have to assume that the probability at least of a possible default does seem to be building."
The end of June is considered the final, final date for a cash-for-reform deal.
And the lenders are reportedly offering a 10 billion euro carrot.
A fund set aside to recapitalise Greek banks could be made available, giving Athens the breathing space - economist Vicky Pryce says they desperately need.
(SOUNDBITE)(English) CHIEF ECONOMIC ADVISER AT CEBR (CENTER FOR ECONOMICS AND BUSINESS RESEARCH), VICKY PRYCE, SAYING:
"I can't see anyone "winning" What we really want is for this crisis to come to an end so things can normalise, give Greece a bit of time to think about a) it's political future and b) it's economic future with help from Europe."
There was one other sign of compromise which might be music to the ears of some
Athens may agree to extend its current bailout programme - despite election promises to scrap it.

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